Senate BillS 4038Foreign Trade and International Finance
Small Business Liberation 2.0 Act
INTRO MAR 10· LAST ACTION MAR 10
READING
13MIN
COSPONSORS
8
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8
Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-written
This bill matters because it directly addresses how import taxes, often passed on to consumers, affect the economy. By exempting small businesses from certain duties, it aims to ease their financial burden. Small businesses are a major source of jobs and goods, and reducing their costs could help them stay competitive, preventing layoffs or business closures, and potentially keeping prices lower for consumers.
Furthermore, the bill's provisions against price gouging are important because they seek to prevent larger companies from exploiting new duties as an excuse to unfairly raise prices beyond what is necessary to cover increased costs. This could help protect consumers from inflation or unwarranted price spikes on essential goods. If this bill becomes law, small businesses could see immediate relief and consumers might benefit from greater price stability on certain products, whereas without it, small businesses would continue paying these duties, and all businesses would face fewer restrictions on how they adjust prices in response to new trade policies.
KEY PROVISIONS
5AI-extracted
PROVISION 01
Exempts small businesses from certain duties (tariffs) imposed by the President under the Trade Act of 1974.
This reduces the financial burden on small businesses, potentially lowering their operating costs and allowing them to keep prices stable.
PROVISION 02
Requires the President to refund any covered duties paid by small businesses on goods imported on or after January 20, 2026, within 90 days of the bill's enactment.
This provides retroactive financial relief to small businesses that have already incurred these specific import costs.
PROVISION 03
Prohibits any person (except small businesses) from selling 'covered goods' at an 'unreasonably high price' for a five-year period after duties are imposed or announced.
This aims to prevent larger companies from increasing prices more than is justified by the actual costs of new duties, protecting consumers from price gouging.
PROVISION 04
Defines an 'unreasonably high price' as a price increase that exceeds the direct costs of the duty and other legitimate costs, establishing a baseline price from the 180 days prior.
This provides a clear standard for what constitutes illegal price gouging, making the prohibition enforceable.
PROVISION 05
Establishes a presumption of price gouging violation if, during a 'duty-related shock date,' a person with 'unfair leverage' sells a covered good above its average price from the prior 180 days.
This makes it easier to identify and prosecute potential price gouging, shifting the burden of proof to the seller in certain circumstances.
This bill matters because it directly addresses how import taxes, often passed on to consumers, affect the economy. By exempting small businesses from certain duties, it aims to ease their financial burden. Small businesses are a major source of jobs and goods, and reducing their costs could help them stay competitive, preventing layoffs or business closures, and potentially keeping prices lower for consumers.
Furthermore, the bill's provisions against price gouging are important because they seek to prevent larger companies from exploiting new duties as an excuse to unfairly raise prices beyond what is necessary to cover increased costs. This could help protect consumers from inflation or unwarranted price spikes on essential goods. If this bill becomes law, small businesses could see immediate relief and consumers might benefit from greater price stability on certain products, whereas without it, small businesses would continue paying these duties, and all businesses would face fewer restrictions on how they adjust prices in response to new trade policies.
KEY PROVISIONS
AI-extracted
high
Exempts small businesses from certain duties (tariffs) imposed by the President under the Trade Act of 1974.
This reduces the financial burden on small businesses, potentially lowering their operating costs and allowing them to keep prices stable.
high
Requires the President to refund any covered duties paid by small businesses on goods imported on or after January 20, 2026, within 90 days of the bill's enactment.
This provides retroactive financial relief to small businesses that have already incurred these specific import costs.
high
Prohibits any person (except small businesses) from selling 'covered goods' at an 'unreasonably high price' for a five-year period after duties are imposed or announced.
This aims to prevent larger companies from increasing prices more than is justified by the actual costs of new duties, protecting consumers from price gouging.
med
Defines an 'unreasonably high price' as a price increase that exceeds the direct costs of the duty and other legitimate costs, establishing a baseline price from the 180 days prior.
This provides a clear standard for what constitutes illegal price gouging, making the prohibition enforceable.
med
Establishes a presumption of price gouging violation if, during a 'duty-related shock date,' a person with 'unfair leverage' sells a covered good above its average price from the prior 180 days.
This makes it easier to identify and prosecute potential price gouging, shifting the burden of proof to the seller in certain circumstances.
Not later than 90 days after the date of the enactment of this Act
The President must refund the amount of any covered duties paid by small business concerns.
During the 5-year period that follows the date on which a covered duty took effect/was increased or a planned duty was demonstrated
The prohibition on price gouging applies for covered goods.
On or after January 20, 2026
A good is considered a 'covered good' if subject to a duty imposed.
GLOSSARY
AI-written
Duty (or Tariff)
A tax charged by a government on goods that are imported into a country. These are often used to raise revenue or protect domestic industries.
Small business concern
A business that meets specific size standards, typically defined by the number of employees or annual revenue, as outlined in the Small Business Act.
Price gouging
Selling goods at an unreasonably high price, specifically an increase that is more than the actual added costs from new import taxes and other legitimate expenses.
Covered good
A finished product or a part used in a product that is subject to certain new or announced import taxes, or a product made with such a part.
Component
A part or ingredient that is sold to consumers as part of a larger, final product.
Planned duty
An import tax that has not yet taken effect but has been publicly announced as intended to be imposed or increased by a senior government official.
Federal Trade Commission (FTC)
A U.S. government agency that protects consumers and promotes competition by preventing unfair methods of competition, and unfair or deceptive acts or practices.
ACTION TIMELINE
2 EVENTS
MAR 10
Introduced in Senate
INTROREFERRAL
MAR 10
Read twice and referred to the Committee on Finance.
A market characteristic or position that, when combined with a specific price increase, can lead to a legal assumption that a company is illegally raising prices (price gouging).
